A positive change coming for the Hungarian real estate market?
Second-hand Budapest studios already cost millions per square metre. The prices have surged more than 30 percent since last year, but market analysts forecast a positive turn-around.
The prices in the housing market have been rising for years, but the 2022 increase so far was the highest spike on the graphs. While from 2020 to 2021, apartment prices in Budapest had grown by 9-14 percent, the market was still booming because people were using the new governmental aid for purchasing properties.
Even in February 2022, the prices were already on the rise even though the energy crisis had not even kicked in. At the beginning of this year, the original offer price for residential property increased by more than 3 percent. Sellers experienced brisk demand, so the prices rose even further. This price increase is inevitable, but 2022 already saw a three-fold surge compared to the already high prices back in 2016.
Buyers’ willingness to change apartments decreased because of the nationwide uncertainty, but the number of those who would purchase property for investment purposes increased. Due to the rising energy prices on the global market, the modernity and energy efficiency of the apartments may be an increasingly important aspect for buyers in the future. Small-size flats will certainly be more sought-after.
A change is forecasted
Owners of residential-use apartments will benefit from low utility costs from next year. However, there are many offices, medical clinics or apartment hotels in the city centre, which will receive sky-high energy bills from 2023. This change will push down real estate prices, and this trend can spread throughout the entire market as well, resulting in a positive turn-around.
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For now, the demand for smaller studios (especially with high energy efficiency) is very high, which is still pushing up the prices. In addition, these types of apartments are also sought by investors fleeing the real estate market due to inflation.
According to data from ingatlan.com, the average price per square meter in Budapest (in the case of apartments up to 119 square meters) in mid-September was HUF 957,000 (EUR 2350.91). This means a 20 percent price increase compared to last year’s figures. At the same time, the cost of an average studio apartment in the same size category increased by 26 percent, and in the case of 40-79 square meter apartments, the price increased by 30 percent.
- Read also: Forint at a new low against the dollar
Source: ingatlan.com
2 Comments
Carnage continues FACTUALLY in the property market.
The exact position it is in, being “Veiled” again and again – from in-side the industry/profession it-self, talking their OWN pockets jargon – feeding Falseness into the heads of Civilians.
This is not HELPED, by the avoidance of the present IMPLODING Hungarian Government, under Prime Minister – Victor Orban – not speaking the state of Decline & Carnage dominating the Budapest, Hungarian property market.
Continual Interest Rate rises 13% a present, that could realistically “push” near being 20% by December 2022.
Collapsing Economy.
Collapsing Currency.
Skyrocketing Inflation.
Cost of Living – soaring.
Sellers – absolutely SMOTHERING Buyers.
Foreign Investment – disappeared.
WHO would want to Invest in Hungary at this point in time ?
What is the attraction to Invest in Hungary either short or long term ?
What is going to Stabilize the Hungarian Economy ?
Do Hungary stay part of the Community of European Countries or under the Orban “dictatorial” plans – Leave the EU ?
Who will LEND / Finance – Hungary at this point in time ?
Hungary – its (2) two FRIENDS – circumstances DOMINATING there countries at PRESENT and the ZENITH distanced, of their MASSIVE problems – surely they won’t extend their ” Lines of Credit “and Bail” Hungary out ?
If Russia & China did “Bail” – Hungary out of its Disintegrating Economic & Financial shambolic position – what would Russia & China – want in RETURN ?
European Union Funding – Dried up to Hungary.
Hungary – officially being told from the European Union, they are NO longer a Democracy.
We are in for a Long Cold Winter, that will spell deepening carnage in the Budapest, Hungary – property markets.
Nice article, thank you for sharing this keep it up.